2025-12-26 08:33:19

A recent number has been trending across the internet — a total of $150 billion in annual liquidations. It sounds like a huge event, but upon closer inspection, the story behind this figure is much more complex than it appears.

Most liquidations are actually just the market’s daily "leverage harvesting" — both bulls and bears testing each other, with chips flowing back and forth. This is a normal market mechanism. Only a few extreme fluctuations, like the crash on October 11, can truly change the situation. Such events often indicate a market structure adjustment, a "major correction," rather than a sign of danger.

In simple terms, how can retail investors live more comfortably? Three points are enough:

First, don’t go all-in with high leverage without a reason. You’re investing, not gambling your life. Second, spend more time observing the market’s rhythm. There are usually signs before big swings; learning to recognize these signs can reveal opportunities. Lastly, choose the directions you truly believe in, and focus your energy there. Don’t let daily liquidation news manipulate your emotions.

A sharp drop in a bull market and a gradual decline in a bear market are both normal operations. The market is currently clearing leverage in a healthy way. Although this process may seem uncomfortable, it’s preparing for a stable trend ahead. Stay clear-headed, learn to find the rhythm amid volatility, and real opportunities will emerge.

BTC-0,86%

ETH-0,53%

View Original

This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.

10 Likes

Reward
10
4
Repost
Share

Comment

0/400

down_only_larry

· 8h ago

Full position all-in traders all get liquidated, this is fate --- 150 billion liquidation sounds terrifying, but it's actually the daily death of leverage traders --- It's called "market mechanism" in nice words, but basically it's a game of cutting leeks --- Observe the rhythm, control leverage, this theory has no problem, just hard to execute --- Real big players are secretly watching for signs, while retail investors are still staring at K-lines --- Don't be hijacked by liquidation news, it's easy to say but truly despairing to do --- Bull markets crash, bear markets decline quietly, cycle after cycle, it's exhausting --- Are opportunities hidden in volatility? All I see is losses --- Choose the right direction and hold on, that's correct, but only if you can really stick to it --- Leverage harvesting is just normal market operation? Then retail investors deserve to be cut out

View OriginalReply0

MetadataExplorer

· 8h ago

150 billion liquidation sounds scary, but it's actually just the market clearing out junk leverage, nothing major. People who go all-in with full positions deserve it. I’ve said it before, don’t play this game. The key is to learn how to read the rhythm; real opportunities come within the volatility. This round of adjustment is indeed tough, but consider it preparation for the big trend ahead. Retail investors are most afraid of being brainwashed by liquidation news; staying calm is the most important.

View OriginalReply0

ApeWithNoChain

· 8h ago

150 billion liquidation, it sounds scary but it's actually just market clearing. Get used to it. For those holding full positions with high leverage, this is your outcome. Timing is key; don't be brainwashed by news of liquidations every day. The correction period is indeed uncomfortable, but it's a necessary step before a bull market. Retail investors fear not volatility but losing their mindset. You must choose the right track and stick to it; don't let emotions control you every day. The wave in October already indicated the problem; a major adjustment is coming. Leverage harvesting is indeed brutal, but that's the reality of market operation. Don't go all-in; this is not investing, it's gambling with your life. Opportunities are hidden in volatility, provided you survive until then.

View OriginalReply0

ShibaMillionairen't

· 9h ago

1.5 trillion liquidation sounds scary, but in reality, it's just the daily routine for leverage traders. Get used to it. Those who go all-in with full positions should calm down; this isn't investing, it's gambling with their lives. The key is to understand the rhythm clearly and not be scared every day by liquidation news that crushes your mentality. It's actually the market self-correcting; there's nothing to fear. Opportunities are within the volatility. Once again, the annual liquidation high indicates that there are still too many leverage users. Retail investors should honestly choose their direction and not mess around with too many tricks. This wave of deleveraging is a good thing, as it can weed out the true holders. 150 billion sounds big, but when broken down, it's just a small amount daily. We've become numb to it. Bull markets crashing, bear markets declining quietly—these are routine operations; there's no need to panic every time. The key is to find your own rhythm and not let the news lead you by the nose. People who understand the signs have already positioned themselves at low levels—that's the real logic behind making money. Going all-in with high leverage is just courting death. I really don't understand the mindset of these people. The market is clearing out, which means the bottom is near. Smart people are quietly building positions. Staying sober is the most important; only a few will find opportunities amid the volatility.

View OriginalReply0